Medco named operator of Libya oil block

Medco International Ventures Limited, a wholly-owned subsidiary of IDX-listed enery firm PT Medco Energi International Tbk, has been appointed the operator of the Area 47 oil block in Libya, replacing Canadian firm Verenex Energy Inc.

?Medco has gained trust from Libyan government to become the operator for the exploration and production sharing agreement for Area 47 during exploration period commencing on April 1, 2010, ?the company said in statement on Monday.

"Currently, we are also in the process of mobilising a drilling rig to complete the drilling of two further appraisal wells and three exploration wells as part of the work programme in 2010," Medco said.

Medco said drillings for this year would also include the completion and testing of three previously drilled wells, which had been suspended.

Medco was in the final stages of seeking a declaration of commerciality from the Libyan government for numerous discoveries made in Area 47, it added.

In last December, shareholders of Verenex Energy Inc overwhelmingly approved of the C$317 million sale of the small Canadian oil explorer to a Libyan sovereign wealth fund, ending an international takeover battle that saw Libya block a richer offer from China. (kanti)